Find an investing opportunity every 60 seconds!
Get SMS to get the App Link
Tap here to access menu...
Tap here to Pull quick market snapshot...
Tap here to open an account...
Welcome to our brand new version...
Download our
RING Mobile App NOW!
Advantage AxisDirect
Quotes
Back To Menu
Ramesh Damani, Market Expert
Jan 05, 2018 | Source: ET
Markets are unlikely to go for two years with similar type of gains. But there is no reason to be pessimistic either. There is a lot of pessimism on the Street regarding what is going to happen to equity markets. But we are going to see global growth, interest rates in Europe and Japan will remain low for a long period of time. Domestic liquidity continues to be exceptionally strong and of course, the market will now focus on Q3 earnings in January and the budget. So, there will be some volatility I am sure. But the Indian markets are not signaling that we are anywhere close to a top.
The situation of too much money seeking few stocks is likely to continue. A lot of people are trying to suck the liquidity out of the market. Rs 20,000 crore worth of say HDFC Bank paper is going to come out a little while and a few other banks as well. A lot of IPOs are scheduled for 2018. Around $4 trillion IPO will happen in 2018.
The market is worried that the government would reintroduce the long-term capital gains tax. The long term capital gains is mostly paid by promoters selling big blocks of shares from one point to other and they would not be very happy with the reintroduction of LTCG. It was introduced to incentivize young investors to come into the new stock market. Now that has happened. We are seeing this huge liquidity coming into the domestic markets because of that. Why do you want to take that away once that policy is working?
We typically tend to look at the market from a bottoms-up perspective and I am very much sector and cap agnostic. I want to buy superior businesses which have had great valuations and will support some growth in the year ahead. We are very happy with the quick service restaurant space and expect good double-digit growth for many years to come. We like cyber security a theme. But if I had a lot more money, I would look at insurance companies and asset management companies to begin with.
Maybe the valuations are a bit high for logistics stocks and you have to be a bit more careful of what we are buying. But I think there are still some bargains to be had.
Equity Market
Stock Markets
ipo
Weekend Reading